ROYAL DECREE

11.16.12

Spain Suicides Lead to Eviction Law

Pablo Blazquez Dominguez / Getty Images

In response to reports of suicides linked to foreclosures, Spain has introduced a new law to help protect families from eviction. Under the new rule, issued by royal decree, banks cannot evict families who cannot pay their mortgages for two years, and it applies to families who meet certain conditions, such as making less than $2,041 per month or families with small children. One expert at Deutsche Bank AG said “there seem to be loopholes which could be exploited, which in turn could finally trigger a rise in nonperforming mortgage losses.” Around 400,000 homes have been foreclosed in Spain since the end of the property boom five years ago—and there have been two suicides over eviction in the past month alone.